The Central Bank of Russia supports sale of large-tonnage polymers on the exchange

MOSCOW (MRC) -- The Union of Plastics Converters has proposed to the Central Bank to allow the sale of large-tonnage polymers on commodity exchanges, for example, on the St. Petersburg International and National Commodity Exchanges (part of the Moscow Exchange), reported Izvestia.

The organization sent a letter to the Central Bank on 1 July , Izvestia got acquainted with it.

Since March 2020, prices of large-tonnage polymers have been constantly growing in the market, the letter says. For example, polystyrene (PS) prices had risen from Rb95/kg to just over Rb170/kg by early spring 2021, the union noted.

Such a sharp increase was caused by a shortage of domestic material on the back of a recovery in global demand, the authors of the letter emphasized. During this period, it was more profitable for producers to export material abroad due to the ratio of exchange rates, Petr Bazunov, General Director of the Union of Plastics Converters, told Izvestia.

The Central Bank considered that the sale of material on the exchange is expedient, according to the regulator's response to the union on July 30. Izvestia got acquainted with it.

The press service of the Central Bank also noted that organized trading is an effective tool for creating a competitive organized market for goods. It is on it that fair pricing can be formed, subject to certain rules.

As MRC reported earlier, in June, 2021, ZapSibNeftekhim (part of SIBUR), Russia's largest polymer production plant, began shipping its products to Latin America, Southeast Asia (Southeast Asia), Africa and South Africa. It is noted that market factors and conditions in the global market at the beginning of 2021, which led to a shortage of polymers in different regions, contributed to the expansion of the sales geography of ZapSibNeftekhim. The complex's production is also supplied throughout Russia, to the CIS countries and Europe, Turkey and China.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Technip Energies announced the successful test of its Large Scale Vortex Burner (LSV) for 100% firing of hydrogen, according to Hydrocarbonprocessing.

The innovative LSV burner was developed by Air Products and designed and applied by Technip Energies’ in various fired heater usages. The successful test demonstrates the potential use of LSV in avoiding direct CO2 emissions by substituting 100% hydrogen for methane or other fuel gases.

The LSV® burner is a cost-effective, low-NOx combustion solution. This technology has been applied successfully over the past 15 years in cracking furnace and hydrogen reformer installations, in both new or retrofitted projects. The burner can now be applied to different process heating applications and combustion air supply modes and also is suitable for a wide range of fuel gas compositions and firing configurations.

As MRC wrote previously, in June 2021, Technip Energies announced the initiation of an agreement with Agilyx Corporation, a wholly owned subsidiary of Agilyx AS and pioneer in the advanced recycling of post-use plastics. This collaboration aims to accelerate the implementation of Agilyx’s technology for the advanced recycling of post-use polystyrene (PS). Under this agreement, Technip Energies will market and license the integrated technologies of Agilyx depolymerization and Technip Energies purification technology, leveraging the expertise, resources, and global presence of respective companies. The technology is ready and available for licensing.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 236,110 tonnes in the first five months of 2021, up by 27% year on year (172,360 tonnes). May estimated consumption was 48,880 tonnes, up by 66% year on year.
MRC

MOSCOW (MRC) -- Borealis has appointed Leo Alders as acting CEO of its fertilizers, melamine and technical nitrogen business (Borealis’ nitrogen business) effective 1 September 2021, as per the company's press release.

In his new role, Leo Alders will be succeeding Rainer Hoefling, who steps down from his current role as CEO. Rainer Hoefling’s next assignment within the broader Borealis group of companies will be announced separately.

Before joining Borealis in 1994 as Engineering & Maintenance Manager, Leo Alders held positions at Philips Electronics, Bayer, and Neste Chemicals. At Borealis, he held several leadership positions in Operations and Process Safety. He was appointed Vice President Base Chemicals in 2018 before taking on his current role of Chief Operating Officer (COO) of Borealis’ nitrogen business.

As MRC reported earlier, the Supervisory Board of Borealis appointed Wolfram Krenn as Executive Vice President Base Chemicals & Operations and member of the Borealis Executive Board, effective 1 July 2021.

We remind that in April 2021, Borealis commenced a new project to secure an increased supply of chemically recycled feedstock for the production of more circular base chemicals and polyolefin-based products. A feasibility study for a chemical recycling unit to be established at the Borealis production location in Stenungsund, Sweden, is now underway.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. In 2020, Borealis generated EUR 6.8 billion in sales revenue and a net profit of EUR 589 million. OMV, the Austria-based international oil and gas company, owns 75% of Borealis, while the remaining 25% is owned by a holding company of the Abu-Dhabi based Mubadala.
MRC

MOSCOW (MRC) -- The process of decommissioning the shuttered Limetree Bay refinery in the US Virgin Islands will take several months, the company's owner told a Texas bankruptcy court, reported Reuters.

Limetree Bay, which filed last month for Chapter 11 bankruptcy protection, has engaged investment bank Jefferies Financial Group Inc to run the sale of the plant, likely in its entirety.

Owners of the facility in St. Croix burned through USD4.1 billion to resurrect what was once the largest refinery in the Western Hemisphere, hoping to take advantage of rising global demand. Instead, the refinery only operated for three months before US environmental regulators shut it in May due to foul odors and noxious releases that harmed nearby communities.

"We probably will completely shut the plant down," Elizabeth Green, lead bankruptcy attorney for Limetree, said in a hearing on Monday. "But I'm not 100% sure that decision has been made."

Limetree would have needed at least USD1 billion to finish a massive overhaul to continue as a viable operation, according to bankers, lawyers and restructuring specialists involved in the case who spoke to Reuters in July.

The plant must now release gases and hydrocarbons from its system. Over the weekend, Limetree successfully re-tested a flare that was damaged during a May incident with EPA inspectors present, according to Green. The US Environmental Protection Agency must approve the removal of hydrocarbons from the plant.

As MRC wrote before, in July, 2021, a US bankruptcy judge raised concerns that Limetree Bay refinery on the Virgin Islands may not have enough money to get through the early days of its Chapter 11 restructuring.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) - Sinopec Qilu Petrochemical, a subsidiary of one of the world's largest energy and chemical companies - Sinopec, intends to shut down its low density polyethylene (LDPE) plant in Tianjin, in northeast China for a scheduled maintenance on 10 August, 2021, according to CommoPlast.

It is expected that the turnaround at this plant, which can produce 175,000 mt/year of LDPE, will last for about 50 days. Thus, this facility may resume operations on 28 September, 2021.

As MRC reported earlier, the company took off-stream its LDPE plant for unscheduled repairs from 6 March to 24 April, 2017.

According to MRC's ScanPlast report, May estimated LDPE consumption in Russia grew to 47,730 tonnes from 37,630 tonnes a month earlier. Russian producers increased their LDPE shipments to the domestic market by reducing exports. Russia's estimated LDPE consumption totalled about 235,610 tonnes in the first five months of 2021, up by only 1% year on year.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
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